SPGA Strongly Opposes Maryland Senate Bill SB860
The Social and Promotional Games Association (SPGA) opposes Senate Bill SB860, which was presented at today’s Maryland Budget and Taxation Committee Bill Hearing.
This hastily drafted legislation represents a dangerous overreach, threatening legitimate business practices across Maryland while attempting to dictate what games adults can play on their phones.
Sponsor Senator Corderman is increasing Maryland’s budget deficit and risking even more significant economic harm, all to the perceived benefit of entrenched, anti-competitive special interests.
As Maryland faces a staggering $3 billion budget deficit, voters must demand to know why the Senator is willing to:
- Lose millions of dollars in state revenue currently generated by social sweepstakes operators in Maryland.
- Sacrifice tens of millions in potential revenue that could be captured through sensible registration and further taxation of social sweepstakes operators.
- Risk substantial economic consequences by criminalizing sweepstakes promotions utilized by Maryland small businesses and Fortune 500 companies alike.
The Senator’s claims during today’s hearing fundamentally misrepresent the nature of SPGA member businesses, which operate legitimately and transparently within the United States.
The truth stands in stark contrast to his mischaracterizations: all SPGA members strictly adhere to a Code of Conduct that includes the implementation of:
- Regulation-grade suppliers
- Advanced age verification technology
- Comprehensive Know Your Customer (KYC) protocols
- Location verification systems
- Robust Anti-Money Laundering (AML) measures
Properly operating social sweepstakes companies already contribute to Maryland’s economy through sales tax on digital purchases, a practice that a state-imposed registration fee could further supplement.
Instead of eliminating this revenue stream, lawmakers can regulate and capitalize on an industry that provides safe, legal entertainment for thousands of Maryland adults who enjoy these games.
At a time when Maryland is seeking solutions to close its budget gap, eliminating a legal, revenue-generating industry would be a costly and unnecessary misstep.
Instead, policymakers should explore regulatory frameworks that harness the economic potential of social sweepstakes while maintaining consumer protections.